The Executive Yuan yesterday approved an amendment to raise the ceiling for a special response budget to NT$590 billion (US$19.7 billion), which includes universal cash handouts of NT$10,000, a measure it previously opposed.
The Cabinet said the Ministry of Finance was unlikely to have a definitive answer on whether noncitizen permanent residents and other residents would be eligible for the handouts until the legislature passes the new budget.
Photo: Tyrone Siu, Reuters
The legislature on July 11 passed the Special Act for Strengthening Economic, Social and National Security Resilience in Response to International Circumstances (因應國際情勢強化經濟社會及國土安全韌性特別條例), which was proposed to counter the effects of US President Donald Trump’s tariff on Taiwanese goods.
The Chinese Nationalist Party (KMT)-proposed cash handout raised the budget ceiling from NT$410 billion to NT$545 billion, which also includes NT$150 billion for whole-of-society defense, NT$93 billion for industry and employment support, and NT$67 billion for social support.
The Cabinet had previously rejected the cash handout, saying it would require government borrowing and that it was unconstitutional for the legislature to unilaterally dictate budgetary matters.
It yesterday made a policy U-turn, saying it had decided to keep the cash handout, although a source last week said the payments would be included in the Executive Yuan’s budget proposal along with a clause to exclude wealthy households.
However, means testing was eliminated after legislators raised concerns over excluding wealthy households, especially in light of damage from heavy rains and typhoons over the past few weeks and the effects of US tariffs, Cabinet spokeswoman Michelle Lee (李慧芝) told a news conference in Taipei.
Additional care services, social support and assistance for industries have also been drafted into the bill, she said.
The cabinet yesterday further raised the ceiling of the special budget from NT$545 billion to NT$590 billion.
An initial NT$570 billion special budget would be allocated in the first stage, with the other NT$20 billion to allow for flexibility based on industry needs, the Cabinet said.
Of the additional NT$45 billion, NT$20 billion would be allocated to Taiwan Power Co (Taipower, 台電) to upgrade power grids and move cables underground, Deputy Minister of Economic Affairs Ho Chin-tsang (何晉滄) said.
That figure was unrelated to the Cabinet’s previous proposal to inject NT$100 billion in aid to the financially struggling utility.
That proposal was cut from the special act last month due to opposition lawmakers’ objections.
Raising the special budget is necessary amid tariff negotiations with the US, Lee quoted Premier Cho Jung-tai (卓榮泰) as saying.
The special budget was originally funded from a NT$444.4 billion allocation from fiscal surpluses, Directorate-General of Budget, Accounting and Statistics Deputy Minister Chen Hui-chuan (陳慧娟) said.
The additional NT$45 billion would be financed through borrowing in accordance with the Public Debt Act (公共債務法), she said.
Democratic Progressive Party caucus chief executive Rosalia Wu (吳思瑤) said that the amendments align with the ruling party’s three key stances: adhering to the Constitution, not implementing means testing or wealth exclusions, and expanding support for disadvantaged groups.
The party on Friday last week reached a consensus that the cash handouts could be issued as long as budgetary authority remained with the Cabinet, turning an unconstitutional act into a constitutional one, she said.
If the changes pass cross-party negotiations this month, it could be reviewed during next month’s legislative session, she said.
Accounting for administrative processing time required by the Executive Yuan, the handouts could begin in October at the earliest, she added.
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